ExpertHard1 markMultiple Choice
CPA · Question 31 · Area III: SOC Engagements
A service organization provides payroll processing services. They outsource the printing and mailing of checks to a third-party vendor. In the context of the service organization's SOC 1® report, what is the printing vendor considered?
A service organization provides payroll processing services. They outsource the printing and mailing of checks to a third-party vendor. In the context of the service organization's SOC 1® report, what is the printing vendor considered?
Answer options:
A.
A user entity
B.
A subservice organization
C.
A related party
D.
A control owner
How to approach this question
Service Org = The main company. Vendor helping them = Subservice Org. Customer = User Entity.
Full Answer
B.A subservice organization✓ Correct
A subservice organization is a vendor used by the service organization that performs controls that are necessary for the service organization to meet its service commitments.
Common mistakes
Confusing User Entity (Customer) with Subservice Org (Vendor).
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